Huge Increase in Online Banking Fraud

Financial Fraud Action have published a report revealing a 48% rise in online banking fraud in 2014 from the previous year.

The reason behind the increase is the fact that more people than ever are using the internet when managing their financial situation.

In particular, there has been a rise in criminals deceiving consumers into giving them personal information and also the amount of computer malware online. Furthermore, in an attempt to steal larger amounts of money criminals are increasingly targeting corporations.

A number of experts on the issue of online fraud have argued that banks should offer a large range of services considering there may be a significant number of people who will still want to go into a branch.

The chairwoman from the campaign Keep Me Posted, Judith Donovan, stated: ìMany banks and service providers want to encourage people to manage their accounts online and will stress convenience and speed as selling points.

ìHowever, the fact remains that online fraud is increasing year-year with many criminals having a demonstrably greater grasp on technology than many of the institutions they are targeting.î

She went on to say: ìThis is particularly concerning for older or vulnerable people who might not be as capable when using technology- how can these people be sure that they are not being targeted by criminals?î

The total losses from fraud on United Kingdom cards amounted to £479 million in 2014 which is a 6% rise from 2013. The legislation in place protects anyone who has been a victim of fraudulent activity on their cards except when it is demonstrated that they have exhibited negligence.

Moreover, all fraud has dropped 21% from the zenith reached in 2008 when it amounted to £609.9 million.

The group Financial Fraud Action elucidated the current situation when stating that because card providers and banks had improved their security facility fraudsters were now targeting people over the telephone.

They went on to propose a major campaign that would serve to increase awareness of this activity across the entire United Kingdom. Another suggestion they had was that all consumers ensure that they have the most updated anti-viral software installed on their computers and that a lot of these facilities are offered by banks for free.

Additional figures that were released included the activity of criminals using UK cards outside of the country thus finding it easier to bypass security facilities. It was shown that losses had gone up in 2014 to £150.3 million which is 23% greater than in 2013.

This report comes just after Natwest have acknowledged that a portion of their customers were having problems with their money transfer service because of ìsystem issues.î Furthermore, it has happened in just after Cifas, the fraud prevention company, revealed that 46-year old men were the most likely as a demographic to be subject to identity theft.